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Renewable Energy Financing Faces Turbulence Amid EU Carbon Tax and Market Shifts

From liquidity shortages to negative energy prices, the green transition hits financial roadblocks. Can new models and institutional support turn the tide?

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Renewable Energy Financing Faces Turbulence Amid EU Carbon Tax and Market Shifts

The renewable energy market is undergoing a major shift in financing, according to industry experts at the Belgrade Energy Forum 2026. Recent challenges, including the EU’s carbon border tax and market volatility, have created uncertainty for investors and lenders alike. Participants highlighted the need for adaptation as the sector enters a new phase of project financing. The introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) has added pressure to the market. Svetlana Cerović, Head of Financing at UniCredit Bank Serbia, explained that CBAM is reducing liquidity and limiting financial power purchase agreements (PPAs). This has made it harder to secure funding for renewable projects.

UniCredit Bank Serbia currently manages over 500 MW of renewable energy projects, ranging from large utility-scale developments to smaller installations. Despite this, insurers’ experience in the sector often goes unnoticed by lenders and investors, as noted by Vladimir Bogosavljević. Marijan Rančić, Director of Business Development at New Energy Solutions, warned that negative energy prices and market coupling issues are adding to the instability. The European Bank for Reconstruction and Development (EBRD) has been working to address these challenges by developing financial models in Serbia and the Western Balkans. Francesco Corbo, the EBRD’s Regional Head of Energy, stated that the bank’s role is to de-risk investments and attract commercial lenders and private investors. The Green for Growth Fund (GGF) is also stepping in to support early market entrants. It offers longer repayment terms and targets first movers, helping them establish a foothold. Meanwhile, the EBRD recommends a long-term outlook, predicting growth in corporate PPAs, stronger energy buyers, and a more mature market overall.

The renewable energy sector faces growing instability due to regulatory changes and market fluctuations. Experts stress the importance of adapting financing strategies to navigate these challenges. With support from institutions like the EBRD and GGF, the industry aims to build resilience and attract sustainable investment in the coming years.

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